PROSPECTING REPORT. Lad Property. EVENT # TENURE # Tenure Name: GPEX CXLVI Lad

Transcription

1 PROSPECTING REPORT Lad Property EVENT # TENURE # Tenure Name: GPEX CXLVI Lad Coquihalla Region New Westminster Mining Division Map 092H Central Coordinate Reference Long W Lat N Report Date November 8, 2007 Tenure Owner - William Larry Amey FMC

2 . 2 INDEX Page i Copy of Tenure Renewal 1 Cover Page 2 Index 3 Introduction / Location / Access / History 4 History continued 5 History continued 6 History continued 7 History continued 8 History continued / Geology (General) 9 General Geology continued / Local Geology 10. Local Geology continued / Summary / Conclusion 11. Work Record / Work Evaluation & Cost Statement 12. Attending Parties & Qualifications / Affidavit 13. General Location Reference Map - Map Work Area Map - Map Contour Map - Map 3 Note: Unless otherwise referenced, map submissions are enhanced excerpts from the BC Ministry's Provincial Mapping System. Scale as that shown.

3 . 3 Introduction This report relates to the prospecting program carried out on the Lad property, tenure # ( GPEX CXLVI Lad ), a seven cell claim comprising hectares, by the author s associates. The Lad tenure was staked on August 16, 2006, due to the high incidence of gold along the Coquihalla Gold Belt. The claim lies along the eastern margin of the East Hozameen Fault, a northwest/southeast trending mineralized, gold-bearing zone. The general Ladner area is well notarized for hosting gold-bearing geology, with the past producing Emancipation Mine lying 325 meters to the west-southwest of the Lad property and the similarly defunct Carolin Mine, at 2.4 kilometers to the west-northwest. The above noted mines and other gold occurrences to the north and south along the Hozameen Fault, have played a large part in the early and ongoing mining history of the area. Location The Lad claim lies approximately 18 kilometers northeast of village of Hope, within the Coquihalla River Valley, and is cut by both BC Highway 5, the Coquihalla Highway, a major four-lane transportation artery between Hope, BC and Merritt, BC., and the Coquihalla River, a southwesterly flowing water course draining the Coquihalla Mountain range. Access Access to the property is gained via exit 195 (the Carolin Mine exit) from the Coquihalla Highway, BC Highway 5, 18 road kilometers north of the BC Highway 3 intersect, east of Hope. While the Lad property lies on both sides of the highway and may similarly be accessed by logging roads, the area relative to this report lies to the north, and is serviced by the Carolin Mine Road. Said Carolin Mine road was used to access the area prospected. History The area s mining history is best described in Prospecting Report #26337, a compilation by J.T. Shearer, and, Minfile Summary Report 092HSW034, both in relation to the Emancipation Mine and area geology, and as follows: By J.T. Shearer In 1910, during the construction of the Kettle Valley railway (now abandoned) along the Coquihalla River valley, prospectors exploring the valley and its tributaries for gold found several gold prospects. Between 1913 and 1915, the Emancipation claims plus other adjoining claims were staked by Messrs. M. Menick, Wm. Thompson and H.

4 . 4 History by J.T. Shearer continued. Beech to cover gold-bearing quartz veins. Since the discovery, the claims have experienced sporadic exploration and mining activity. During the early life of the Emancipation mine, from 1916 to 1919, some 95 tons of ore was extracted, and returned over $35,000 (averaging 15 oz/ton). By 1921, considerable amounts of underground development work had been carried out and a five-stamp roili installed with a production capacity of 12 tons per day. The operator was the Liberator Mining Company of Vancouver, B.C. During this period, approximately I18 tons of ore was shipped to Tacoma, Washington, USA, again with a return of approximately $35,000 and an additional 700 tones of sub-ore valued at $15.00 per ton was stockpiled at the mill. Work at the mine was intermittent from 1922 through to 1933, during which time the property changed owners several times with Dawson Gold Mines Ltd. being the major operator. Limited work was done in 1937 by Kettle Valley Gold Mine Ltd. As documented by the B.C. Department of Mines, production figures between 1916 and 1941 kom the Emancipation were 2,897 oz. gold and 605 oz. silver; total tons of ore mined is unknown. From consideration of the volumes of drift and stoped ground in the underground workings, material produced has been possibly about 10,000 tons. The substantial waste dump at the No. 2 Portal indicates that only a part of production was considered mill fee. The 1933 Minister of Mines report provides some interesting but limited information regarding the lower tunnel (4 Level), which until was inaccessible due to sloughing of overburden at the portal. It is described as 210 feet below No. 2 Level. During 1933, the drift was driven 570 feet with crosscuts at intervals to east and west with the face at that time nearly directly under the ore body in No. 2 winze. The face at that time [ 1933) of the drift showed a vein zone of about 11 feet wide with intercalated country rock and some calcite. The central part was well mineralized with sulfides. Chip sample over 8 feet assayed 0.40 oz./ton in gold and 0.10 oz./ton in silver. A picked sampled from the face at that time assayed 2.12 oz./ton in gold. Observations in 1992 suggest that this mineralized area appears to pinch out a short distance to the north along the drift. At that time, ore was being produced from stoping on No. 2 Level and this material was being transported to the mill lower down by the aerial tram. The mill operated at 25 tons per day. Operations by Dawson Consolidated Ltd. continued at least to 1938 but no quantities or grades of production during the latter part of the operation are preserved. In more recent years (197 1 and later) due to the increase in price of gold, the Emancipation Mine and adjoining claims experienced renewed exploration. In 1971, Aquarius Resources Ltd. acquired the existing claims and mineral leases (Sunshine and Raymond) and with additional staking, the claims were collectively called the Hope Group. In 1972, A. R. Bullis surveyed, mapped and sampled the underground workings in the Emancipation mine and Dr. G. C. Stephens of Alrae Engineering in 1973 conducted general surface geological mapping on the entire Hope Group. From , under the direction of Cochrane Consultants Ltd., an extensive surface exploration program on the claims was carried out which included detailed geochemical soil surveys and ground geophysical work. In 1980, an all-weather road was constructed to the Emancipation Mine and further underground mapping and sampling was performed by in-house Aquarius staff under the direction of D. Cardinal, Emancipation July

5 . 5 History by J.T. Shearer continued. The following season (198 I), an aggressive surface and underground diamond-drilling program was conducted. Results from the drill@ program were encouraging and demonstrated the need for continued underground exploratory drilling. However, no further work was conducted until the underground diamond drilling by Homegold Resources Ltd. in under option from Anglo Swiss Mining Corp. The work conducted on the Emancipation Mine commenced by Homegold Resources Ltd. during the fall of with the reopening of the 1.6 km access roads constructed by Aquarius Resources Ltd. in The roads were overgrown with dense alder trees and brush. An excavator and D8 bulldozer were used to repair and ditch the roads and excavate sloughed material that had covered the 4 Level portal of the Emancipation Mine. A new access road was constructed ramping down horn the 3 Level ported to the newly reopened 4 Level portal. The portal was m-timbered, washed out end the 4 Level drift was scaled. Upon completion of the scaling, the dirt? floor was mucked out, the major obstacle being material from the raise up to 3 Level that had flowed into 4 Level. The narrow gauge (18 inch) track was repaired. A small ore car was set on the tracks and was used to carry the cave material out of the drift. Once the drift was cleaned up, drill stations were established by slashing out openings along the crosscut and drift walls. The drill program was designed to explore a possible replacement zone that had been intersected by Aquarius Resources Ltd. in the down-dip extension of the Boulder vein. Underground diamond drilling in 1980 and 1981 indicated that sulfide and silica replacement increased with depth and along strike below the 3 Level on the Boulder and subsidiary veins. The underground workings were surveyed by transit and EDM (S. Nickel and Associates Surveying Ltd.) and accurate plans and sections prepared. A total of 3 holes were drilled in for 267 feet of core. The mineralized intervals were split and assayed at Chemex Labs Ltd. In 1994, the area around the portals was prospected and the underground core was logged. Nearby on the Idaho Claim north of Ladner Creek, 6 km north of Emancipation, Carolin Mines Ltd. commenced a wide ranging exploration program in 1974, which culminated in large scale production between December 1981 and September 1984 of about 45,000 ounces of gold. Carolin spent about 40 million dollars installing a 1500 ton per day flotation/cyanide mill-mine complex. The Carolin operation failed due to the mill not recovering the gold (~50% recovery) and severe mismanagement. Recently, Athabaska Resources ltd. has acquired the Ladner Creek Mine-Mill in early 1995 and initiated an aggressive 3 million dollar exploration program in supervised by J.T. Shearer which resulted in the discovery of new gold zones and definition of gold reserves at McMaster giving the following new ore reserve calculations (Shearer et.& May 1997): -Idaho & McMaster Underground: 1,860,000 tonnes averaging 442 g/tonne Gold -Open Pit at McMaster: 186,000 tonnes averaging 1.88 g/tonne gold. The database at Ladner Creek Property now consists of over 50,000 metres of diamond drill core and 10 km of underground workings. Emancipation July 2000

6 . 6 History Continued Minfile Report 092HSW034 In 1910, the construction of the Kettle Valley railway opened the area to prospecting and mineral exploration. This led to the discovery and staking of the Emancipation claim in Intermittent production occurred at the Emancipation gold mine between 1916 and By 1921, a considerable amount of underground development work had been carried out and a 5-stamp mill installed with a 4.53 tonne per day capacity. The operator at this time was Liberator Mining Co. Between 1922 and 1933 ownership changed hands several times, with Dawson Gold Mines Ltd. the main operator. Kettle Valley Gold Mine Ltd. conducted limited work in The mill operated at tonnes per day with ore mined from the No. 2 level. In 1971, Aquarius Resources Ltd., restaked the Emancipation as the Hope claim group and renewed exploration on the property. In 1972, the underground workings were surveyed, mapped and sampled. Surface geological mapping was carried out in From 1976 to 1976, an extensive surface exploration was carried out under the supervision of Cochrane Consultants Ltd. In 1980, an all-weather road was constructed and further underground mapping and sampling was carried out. A surface and underground drilling program was carried out in 1981 by Aquarius Resources Ltd. Underground drilling consisted of 31 drillholes, totaling 1177 metres. Surface drilling consisted of 10 drillholes, totaling 901 metres. No further work was conducted until under option from Anglo Swiss Mining Corp. by Homegold Resources Ltd. Considerable underground refurbishing was conducted on the Nos. 3 and 4 levels. Three underground drillholes were completed, totaling metres. In the area of the Emancipation mine, sedimentary rocks of the Lower and Middle Jurassic Ladner Group are separated from the Coquihalla Serpentine Belt to the west by a fractured, elongate slice of greenstone, 100 to 180 metres wide, of the Triassic Spider Peak Formation. The Ladner rocks are generally overturned, west dipping and east facing; the unconformity between them and the Spider Peak Formation is poorly exposed and has been faulted and sheared. The Ladner rocks consist of slaty argillites, siltstones, wacke and clastic limestone. The East Hozameen fault system in the mine area dips steeply east and apparently involves two generations of fracturing. The oldest set strikes northerly and is offset 250 metres left-laterally by a younger northwest-striking fault along Tangent Creek. The Emancipation mine was developed by five adits (adits 1-4 and A) that were concentrated along a series of gold-bearing quartz +/- carbonate veins that cut the Spider Peak Formation. These veins were the principal ore source of the mine. However, two of the lower workings (adits 3 and 4) were driven on a talc-bearing zone within the Hozameen fault which was apparently barren. In 1933, a drift on the No. 4 level intersected a 3.35-metre wide vein directly beneath the ore zone in the No. 2 winze. The central part contained abundant sulphides and a chip sample across 2.44 metres yielded grams per tonne gold and 3.43 grams per tonne silver (Assessment Report 23492). A picked sample from the face yielded grams per tonne gold (Assessment Report 23492). Outcrops of massive to highly sheared talc are seen in Tangent Creek. Both drilling and underground workings indicate the talc-bearing fault zone is locally several metres wide.

7 . 7 Minfile Report Continued.. There are essentially three sets of quartz +/- carbonate veins at the mine. These include the Boulder vein and the Dike vein, separated by a set of irregular, reverse dipping flat veins. Both the Dike and Boulder veins typically follow reverse fractures and vary markedly in attitude and character along strike and with depth. The flat veins apparently follow second order sigmoidal tension fractures. The flat veins comprise numerous thin quartz +/- calcite veinlets, irregular lenses and stringer networks together with at least three more prominent quartz veins. They strike north to northwest, are from 0.5 to 20 centimetres wide and dip 20 to 45 degrees east. They are splays from the overlying, gently inclined Dike vein, but quickly pinch out with depth. The veins consist of quartz with calcite, plagioclase, gypsum and sulphides together with some free gold. On the surface, close to adit 2, the Boulder vein strikes northerly and follows the faulted contact between the Spider Creek Formation and the Ladner Group. Farther north, the vein system splays, swings to a northeasterly strike and is locally hosted entirely within Ladner rocks. It is the widest vein on the property, varying between 0.5 and 4.6 metres in width, and dipping from 50 to 65 degrees west. It contains mainly milky to clear massive quartz, and minor amounts of calcite. The vein carries sporadic traces of disseminated pyrite, arsenopyrite and chalcopyrite, but little or no gold. Locally, the margins of the Boulder vein grade outward into brecciated zones up to 3 metres wide. These comprise fragments of Ladner rock with disseminated sulphides set in a vein matrix which contains minor to trace amounts of albite, calcite, dolomite, siderite, gypsum, pyrrhotite and marcasite. Underground drilling on the Boulder vein system in the 1980s intersected sulphides along the margins of the vein, predominantly on the hangingwall. In decreasing order of abundance, sulphides consisted of disseminated pyrrhotite, pyrite, chalcopyrite and arsenopyrite. The Boulder vein system changes character downdip and along strike from a more massive quartz vein to a quartz stringer with pervasive silicification. The sulphide content also increases downdip and occur as a silica-sulphide replacement zone. Tuffaceous sediments in the hangingwall also contain more sulphides downdip. During drilling, visible gold was noted in at least three areas of replacement and appeared to be associated with arsenopyrite. The best intersections from underground drillholes were from drillholes U-15 and U-19. The 1.4-metre interval between 23.9 and 25.3 metres from drillhole U-15 yielded grams per tonne gold (Assessment Report 23492). The 1.6-metre interval between 14.6 and 16.2 metres from drillhole U-19 yielded grams per tonne gold (Assessment Report 23492). Surface drilling north of the Emancipation mine was conducted to delineate geological contacts, structures, quartz veins and mineralization. The drillholes intersected similar structures and rock types intersected in underground drilling, favorable for sulphide replacement zones but no significant altered or mineralized zones were found. Locally, the greenstones in the hangingwall of the Boulder vein are intensely silicified over widths of 1 to 4 metres, and contain disseminated carbonate, pyrite, pyrrhotite, arsenopyrite and chalcopyrite, but no gold. Drilling during the 1980s by Aquarius Resources indicates that this

8 . 8 Geology Minfile Report Continued.. hangingwall alteration persists at depth, but the Boulder vein quickly pinches out downdip. A sample taken of altered wallrock yielded 820 parts per billion of tellurium, suggesting the presence of tellurides in the system (Bulletin 79, page 45). The Dike vein was probably the most important source of ore as it was stoped for 85 metres along strike and over 40 metres downdip. It strikes north and varies from 1 to 60 centimetres in width, the dip varying with depth. In the upper mine workings, the Dike vein dips 45 degrees west, but with increasing depth the dip flattens out until it becomes a gently undulating, subhorizontal structure. Also with increasing depth, the vein splits into several subparallel veins and veinlets of quartz and/or calcite. The system follows a strongly sheared chloritic fault zone. The vein contains small specks of gold along with pyrrhotite, arsenopyrite, pyrite, chalcopyrite and marcasite. The vein also contains nodules of pink albite, and enargite has been observed locally. Early reports state that free gold occurred in spectacular amounts. For further details on the Coquihalla gold belt and the Emancipation mine, readers are referred to Bulletin 79, from which most of the above information was taken. A good description of the workings completed up to 1937 may be found in a report by Schofield and Orr (Property File). The Emancipation gold mine was active between 1916 and 1941 producing 18,818 grams of silver, 90,104 grams of gold, 61 kilograms of lead and 85 kilograms of zinc from a total of 1158 tonnes mined. The underlying geology of the exact area prospected is not known by the author, therefore that contained in Prospecting Report 26337, by J.T. Shearer, a derivative of work conducted by he, on an immediate adjoining block, is tendered and relied upon as being fully descriptive of the generalized area. As follows: GENERAL GEOLOGY by J.T. Shearer The Coquihalla Gold Belt has been extensively studied on a regional scale. notably by C. E. Caimes (1924 and 1930) and G. E. Ray ( ). C. E. Cairnes has mentioned the similarity in geology between the Mother lode district of California and the Coquihalla Gold Belt (Caimes, 1924). Over 30 gold occurrences are known to occur in the Coquihalla Gold Belt in the area of Hope-Boston Bar-Coquihalla River area (see figure 4 & 5). The gold occurrences are clustered close to the eastern margin of the Coquihalla serpentine belt, which is sharply delineated by the East Hozameen fault. Gold often occurs in quartz veins within rocks adjacent to the eastern edge of the Coquihalla serpentine belt. Both the West Hozameen fault and the East Hozameen fault dip to the northeast and separate Jurassic to Cretaceous turbiditic basinal deposits of the Pasayten Trough to the northeast from Permian to Jurassic oceanic supracrustat rocks of the Hozameen Group, which occur to the southwest.

9 . 9 GENERAL GEOLOGY by J.T. Shearer continued. The Pasayten Trough, which lies east and northeast of the serpentine belt, is made up of a sedimentary succession having a thickness of 9,000 metres. Unconformably underlying the trough and forming a basement to it is a volcanic greenstone sequence of possible Triassic age, which has been named the Spider Peak Formation (Ray, 1986A). This formation has been traced, somewhat discontinuously, for over 15 cm along the eastern edge of the East Hozameen fault where it often forms a thin strip separating the Serpentine Belt from the Ladner Group of sediments in the Pasayten trough. Locally, the Spider Peak Formation provided the host rock for the previously mined gold at the Emancipation Mine. The Ladner Group of early Jurassic age is made up of the oldest sedimentary rocks in the Pasayten trough. These rocks include slaty argillites and siltstones with lesser amount of wacke, lithic wacke and conglomerate. The Ladner Group commonly has an unconformable steeply western-dipping contact with the Spider Peak Formation. Often sections of the Ladner Group have been overturned and intervals of Spider Peak Formation occur to the east of the conglomeratic wacke units. Sediments of the Ladner Group have provided the host rocks for most of the largest known gold deposits in the Coquihalla Gold Belt. This includes the gold produced and the reserves outlined at the Ladner Creek property (Idaho Gold Deposit), which has been the largest producer to date in the district. The sedimentary rocks of the Pasayten trough, including the Ladner Group, have been invaded by numerous small intrusive bodies varying from gabbro and diorite to syenite but their relationship to gold deposition, if any, has not been established. However, many of the northern gold showings (north of the forks of Siwash Creek) are hosted by small felsic dykes. The Aurum mine, which was later absorbed into the Ladner Creek property, ranks as a distant third [ 16,s km of gold) in production from the Coquihalla Gold Belt after Idaho and Emancipation. At Aurum, spectacular gold was found in talcose shears and tale schist within the East Hozameen fault, which lies at the eastern edge of the Coquihalla Serpentine Belt. After the discovery in 1926, a flurry of activity occurred in the search for other talcose shears carrying gold throughout the district. LOCAL GEOLOGY and MINERALIZATION by J.T. Shearer The Emancipation Mine and surrounding claims are underlain by the important East Hozameen Fault Zone structure. In the vicinity of the mine, the steeply east-dipping fault separates a fault-bounded slice of Lower Triassic Spider Peak Formation altered andesites to the east from the serpentines of the Coquihalla Serpentine Belt. Further to the east, near the 2 Level Adit, the Spider Peak altered andesite is in contact with Lzuiner Group (Jurassic) sediments along a high-angle reverse fault (Ray 1990). The Ladner Group rocks are overturned and dip westerly with the tops towards the east. The known gold-bearing veins and replacement alteration occur primarily within the altered Spider Peak Formation altered volcanics but may extend into the Ladner Group.

10 10 Local Geology by J.T. Shearer continued. The Ladner Group in the vicinity of the Emancipation mine is mainly comprised of altered argillites and siltstones. The lower units of the Ladner Group are only represented by a 1 to 2 m-thick unit of lithic wacke and siltstones containing clasts of chert and volcanic rock. This unit is adjacent to the faulted Spider Peak altered andesite. In the Carolin Mine area 3 km to the northwest, the coarse elastic units of the Lower Ladner Group reach a thickness of 200 m (Ray, 1990) (Figure 8) and contain much of the gold mineralization. Summary The fieldwork conducted involved general prospecting between the 580 to 700 meter level, and extended along the traverse indicated by red markings on Map 2, hereto attached. The property s western boundary lies along the Longitude coordinate of Prospecting commenced from the Carolin Mine roadway at coordinates , , cutting up-hill (west-northwesterly) thence striking north-northeasterly along the east-facing slope to where the traverse intersected the north-most property line, at coordinates , , a short distance from the Carolin Mine Road. The area of traverse proved heavily wooded and lacking of sufficient outcrops from which to recover rock samples. The team did, however, secure four samples, two of which showed sulphide staining. Select segments were taken from all four, crushed to a fine powder, then examined under microscope. Only the two sulphide-stained samples showed traces of metallic content, with pyrite, chalcopyrite and?arsenopyrite. The metallics were not identified and no trace amounts of gold were observed, even under 300x magnification. Conclusion The claims were renewed to offer further exploration on this property.

11 11 Work Record Work Evaluation & Cost Statement Work Record Work Date Time Log Manpower Comments Total Hours Laborers Jul 17, Dave Chamberlain Prospecting 7.50 Jul 17, Brandon Wiggins Prospecting 7.50 Sub Total Hours Allowable Labor Credit Rate $20.00 per hour > $ Supervisory Jul 17, Joe Wiggins Prospecting 7.50 Sub Total Hours 7.50 Allowable Supervisor Credit Rate 7.50 $30.00 per hour > $ Total Allowable Work Credit $ Evaluation of Work & Statement of Costs 3 persons man hours Supervisory $ Labor $ Meals $ Accommodations $ 0 Sub Total $ Allowable Vehicle Exp $ Report Preparation $ TOTAL $

12 12 Attending Parties & Qualifications: Joe Wiggins - - nineteen years intermittent prospecting experience Dave Chamberlain - - three years intermittent prospecting experience Brandon Wiggins - - two years intermittent prospecting experience November 8, 2007 Report prepared by: William "Larry" Amey

13 REFERENCE MAP 1 13 Geographical Location

14 .14 REFERENCE MAP 2 Lad Claim Work Areas (Signified by Red Markings) Scale 1:8,000 Map 092H Excerpt Tenure Coordinate Reference Long W Lat N

15 .15 REFERENCE MAP 3 Contour Map of Claim Area Scale 1: 8,000 Map 092H Excerpt Tenure Coordinate Reference Long W Lat N